Why the Dow Surged This Week

For the third straight week, the market is up. The Dow (INDEX: ^DJI  ) rose 2.4% while the broader S&P 500 (INDEX: ^GSPC  ) and Nasdaq (INDEX: ^IXIC  ) rose 2.0% and 2.8%.
And now that earnings season is in full swing, we can point to actual company actions for driving the stock market rather than vague musings on Europe, unemployment, or "the January Effect."
All 30 stocks in the Dow were up this week, but tech and banking dominated. The top seven gainers were in those two sectors:

Company	Weekly Stock Price Move
Bank of America (NYSE: BAC  )	7.0%
Hewlett-Packard (NYSE: HPQ  )	6.2%
IBM	5.2%
Microsoft	5.2%
Intel	4.9%
Cisco	4.5%
JPMorgan Chase	4.0%

Of these, Bank of America, IBM, Microsoft, and Intel all reported this week �C on Thursday, to be precise. Click on the links to get the rundowns.
In banking, generally favorable reports from Bank of America, Goldman Sachs, and Morgan Stanley? gave hope to a beaten-down sector. Keep in mind that these reports weren't especially strong on an absolute basis. Rather, any decent news in banking sends shares skyward ! because expectations are so low. Nowhere is this more true than Bank of America. Hence its Dow-leading position this week.
Meanwhile, in tech, the company-specific good news at IBM, Microsoft, and Intel drowned out the market's poor reaction to non-Dow techie Google's earnings (Google was down 6.2% this week). We see that in Hewlett-Packard, whose business model is more tied to the fates of IBM, Microsoft, and Intel than it is to Google.?
It's fun to look at the weekly (and daily �� and hourly) market news, but remember to keep your perspective and invest for the long term (years and decades). If you're looking for a long-term stock pick, our chief investment officer has identified his No. 1 stock for the next year. Find out which stock he likes in our brand-new report: "The Motley Fool's Top Stock for 2012." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this legendary company.

Selective Supply Drops Could Push Oil Prices Higher

In the calculus of oil prices, Wall St. often factors in supply interruptions that could come from political instability and terrorism. But, what if selective large reserves simply start to run out, without much warning?
Mexico’s largest oil field, one of the biggest in the the world, suffered a huge drop in production during 2006. According to industry experts, the decline will continue.
The news comes as somewhat of a surprise. And, the supply and demand metrics that move oil prices are often unsettled by unexpected news.
Watch for the price of oil to move higher, and, if the news from Mexico gets worse, cost-per-barrel  could sit at a higher level for awhile.
Douglas A. McIntyre can be reached at douglasacmcintyre@247wallst.com.

Introducing the 24/7 Wall St. Wire

We noticed how short sellers had increased their bets against banks and financials, even if this was right at the time that the big short squeeze came via a huge market rally.? But what is interesting is that the short sellers had actually been taking their bets down slightly in the online and discount brokerage firms.
Company Stock (Ticker)……………………… March 13… Change
E*TRADE Financial Corp. (ETFC)…………. 72,711,601? (-1.42%)
TD Ameritrade Holding Corp. (AMTD)….. 11,509,080? (-1.43%)
The Charles Schwab Corporation (SCHW) 33,356,727? (-3.09%)
What is interesting about the online and discount brokerage firms is that these have not risen as much as many of the leveraged banks and brokerage firms in this last rally.
JON C. OGG
March 25, 2009

Can China avoid a hard landing?

NEW YORK (CNNMoney) -- The $64,000 question facing the global economy this year should be more accurately dubbed the 404,163 yuan question: Can China avoid a big slowdown in growth in 2012?
Investors, economists and even central bankers are all banking on China to keep expanding at a robust enough pace to ensure that the global economy hums along.

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China stocks have gotten off to a strong start following a horrible 2011. The Shanghai Composite plunged more than 20% last year as China's central bank was busy raising interest rates and boosting reserve requirements in order to fight inflation and fears of a housing bubble.
But the Shanghai Composite (SHCOMP) is up about 4% this year, with most of the gains coming in the past few days. Hong Kong's Hang Seng (HSI) has also rebounded so far in 2012.
On Monday, Atlanta Federal Reserve President Dennis Lockhart, a voting member on the Fed's policy committee this year, told reporters following a speech that he was confident in China's ability to engineer a so-called soft landing.
Still, the latest figures regarding China's trade balance have to make you wonder if China really can pull off the proverbial Goldilocks trick (Not too hot. Not too cold. Just right.) with its economy.
While China's trade surplus surprisingly widened in December, much of that was due to a bigger-than-expected slowdown in imports. That's not a good sign. Export growth also slowed a bit, ! which ma kes sense given that China's biggest trading partner, Europe, is in a world of sovereign debt hurt.
If Europe gets worse before it gets better, that could be a setback for China. Nonetheless, some experts said that investors should take a step back and look at the big picture.

Chinese manufacturing expands slightly

China probably won't be able to continue reporting annual gross domestic product growth of around 9% to 10%, but it's unlikely to slide into the mid-single digits.
"China is in a more robust position than almost any global economy. Europe is a problem, but I wouldn't anticipate a major slowdown," said Richard Driver, currency analyst with Caxton FX in London. "I still think we are looking to China to lead the global recovery."
It also looks like China realizes that it has an important role in what I've dubbed the Great Global Easing, a coordinated effort by bankers around the globe to prevent Europe from becoming a Lehman-esque disaster.
China has already reversed course on one form of monetary tightening, agreeing to lower reserve requirements for banks at the end of November. That was the first cut since late 2008.
That should allay some fears about a real estate bubble. Ilan Goldfajn, chief economist at Itau BBA in Sao Paulo, Brazil, dismissed concerns that China's housing sector will go bust the way that the U.S. market did a few years ago.
In a China outlook report late last year, Goldfajn wrote that it looks like much of the tightening China did in 2011 is starting to work. Housing prices and sales are slowing, but not yet at an alarming rate.
"Real estate investments are cooling down and there are signs that the sector will decelerate further, though the process is largely induced by the government," he wrote. "In case of a sharp slowdown, with prices falling more than wished for, the government may reverse the process."
And with China due to report its latest inflation figures lat! er this week, there are hopes that pricing pressures -- for food as well as real estate -- have abated enough to allow the People's Bank of China (the Chinese equivalent of the Fed) to finally start lowering interest rates as well.
According to estimates from research firm High Frequency Economics, Chinese consumer prices are expected to have risen at an annual pace of 3.6% in December, compared to 4.2% in November. If inflation does continue to moderate, that's undeniably good news for Chinese consumers and the world.

China shifts gears from inflation to growth

"While China continues to be affected by uncertainty across the euro zone, we do not anticipate a 'hard-landing' scenario," said Dr. Peter Lee, head of the emerging markets strategy team with Mirae Asset Global Investments in New York. "There have been further indications that inflation in China is on a downward trajectory."
The main issue with China is that investors have to readjust their expectations. Going from, say, 10% growth to 7% growth is not a catastrophe. It's just realistic at a time when many major markets are all facing serious challenges.
Think about it. The U.S. is not healthy, yet it is the best of a sorry bunch compared to Europe and Japan. As long as these economies continue to languish, China is likely to do all it can to make sure that it too doesn't succumb to the malaise plaguing the developed world.
"Policymakers continue to reiterate their support for loosening monetary policy and promoting growth-oriented fiscal measures," Lee said.
Hopefully, he and others who remain bullish on China's prospects are right. The global economy can withstand a mild pullback in China, but it won't be able to hold up if there is a severe contraction.
Best of StockTwits: Yoga apparel maker Lululemon (LULU) isn't in a downward dog position. Shares surged after it lifted guidance Tuesday. And it's just one of several tarnished momentum stocks of 2011 that are makin! g a furi ous comeback this year.
Lobaeux: Significant upgrade in $LULU guidance, this may foretell other luxury brand's in this barbell economy. $LULU to 65 before pullback?
Not sure I'd go so far to call yoga pants luxury. And for what it's worth, Tiffany (TIF) cut guidance due to somewhat lackluster holiday sales. It cited "restrained spending" for jewelry. I discuss LULU and TIF more in this Buzz video.
CreateCapital: Every once in a while $GS must be right with a public call. Serves to confuse... $LULU.
Yup. To give credit where it's due, The Vampire Squid did add LULU to its "Conviction List" last week. But does that mean a strong sell recommendation is looming next week?
reformedbroker: Just when everyone piled into cardboard companies with dividends - it's the RETURN OF THE RED HOTS! $LULU $NFLX $FOSL $GMCR $MAKO
Heh. It does appear that risk is back in the on position so far in 2012. We'll see how long it lasts. I still like my stodgy dividend companies ...which brings me to this last interesting tidbit.
ivanhoff: The good, old boring railroad stocks near 52-week highs again:
I like seeing that. For one, Union Pacific (UNP, Fortune 500) and Norfolk Southern (NSC, Fortune 500) are solid dividend payers. And even in this app-crazy social media world we live in, you still need good old fashioned 19th century tech to transport stuff such as commodities and consumer goods. Healthy railroads could be good sign for the economy.
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.

FAP Turbo – Does This Forex Robot Live Up to Its Expectations?

Whаt is FAP Turbo?

It is one of the many Forex robots that traders use in their different Forex transactions these days. It is an automated system that gathers data and information from the Forex market and uses these to hеƖр you win more trades and investments. It can work without you having to monitor it day in and day out, because it was built to grant consumers with convenience and time flexibility. Yου do not even have to have expert knowledge on the subject matter to be аbƖе to make use of the robot software.
Hοw ԁοеѕ FAP Turbo work?

FAP Turbo is the newer and fresher version of the Forex Autopilot, another well renowned Forex robot that has already proven itself to be successful. Thе FAP Turbo generates analysis of real time Forex market data. It looks for trends that are promising and highly profita! ble. It constantly watches all the transactions it gets into and takes note if their performances. If it realizes that the fluctuation happening in the market is unfavorable, it automatically trades away the loser investments and ѕtаrtѕ a new process. It can handle manifold trades at a time.
Sіnсе it conducts trade actions by reacting to sudden changes in the Forex market, you can count on it to be аbƖе to rυn by itself anytime of the day. Yου can just leave it there while you go somewhere and do your οwn business. If you want, you can connect it to the internet 24 hours a day, seven days a week so that it has access to real time market data. If you prefer not to do thіѕ, some publishers grant a feature to make it rυn on their servers but with additional charges.
Whаt mаkеѕ FAP Turbo different from the other Forex robots?

Amongst all th ! 1; robot software programs sold today, the FAP Turbo is the most conservative. It can give you a higher winning rate because it only participates in trades when it is completely sure that you can earn money from thеm. It has high standards when reading market trends and patterns. It mаkеѕ sure that all standards are met before it mаkеѕ any kind of investments.

3 Stocks That Blew the Market Away

Don't settle for ordinary quarterly reports.
I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. Leaving Wall Street's pros with stunned expressions can be a good thing. It usually means that the companies have more in the tank than analysts figured. Capital appreciation typically follows.
Let's take a look at a few companies that humbled the prognosticators over the past few trading days.
We can start with FedEx (NYSE: FDX  ) . The speedy deliverer posted adjusted earnings of $1.57 a share in its latest quarter, ahead of both the $1.16 a share it rang up a year earlier and the $1.52 a share that investors were banking on.
FuelCell Energy (Nasdaq: FCEL  ) also fueled past the pros. The power plant maker saw revenue climb 76% in its latest quarter, and it now has a product backlog of $131.8 million. However, for our purposes, FuelCell makes the cut by posting a quarterly deficit of $0.06 a share. Wall Street was braced for a loss of $0.07 a share. It may not seem like much of a beat, but FuelCell Energy has now posted narrower than projected losses in five consecutive quarters.
Speaking of smaller-than-expected losses, drugstore chain Rite Aid (NYSE: RAD  ) posted a deficit of $0.06 a share. Wall Street figured that the beleaguered pharmacy operator would generate nearly twice the red ink that it actually did. Rite Aid also narrowed its projected deficit for the entire year. This may not look pretty, but it's the way that turnarounds start.
It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative experience for investors as the market rewards the overachievers. That's the kind of surprise that we look for?in the Rule Breakers newsletter service. Want in?! Check o ut a 30-day trial subscription. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.
Either way, come back next week to learn about more stocks that blew the market away in the coming days.
If you want to track these stocks to see if they come out ahead next quarter, add them to My Watchlist:

• Add Rite?Aid to My Watchlist.
• Add FedEx to My Watchlist.
• Add FuelCell?Energy to My Watchlist.

1 Reason General Dynamics Looks Weak

Margins matter. The more General Dynamics (NYSE: GD  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong General Dynamics' competitive position could be.
Here's the current margin snapshot for General Dynamics over the trailing 12 months: Gross margin is 11.7%, while operating margin is 11.7% and net margin is 7.7%.
Unfortunately, a look at the most recent numbers doesn't tell us much about where General Dynamics has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.
Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months, the last fiscal year, and last fiscal quarter (LFQ). You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch.
Here's the margin picture for General Dynamics over the past few years.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of seasonality in some businesses, the numbers for the last period on the right -- the TTM figures -- aren't always comparable to the FY results preceding them. To compare quarterly margins to their prior-year levels, consult this chart.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

Here's how the stats break down:

• Over the past five years, gross margin peaked at 18.3% and averaged 16.7%. Operating margin peaked at 12.5% and averaged 11.8%. Net margin peaked at 8.4% and averaged 7.9%.
• TTM gross margin is 11.7%, 500 basis points worse than the five-year average. TTM operating margin is 11.7%, 10 basis points worse than the five-year average. TTM net margin is 7.7%, 20 basis points worse than the five-year average.

With recent TTM operating margins below historical averages, General Dynamics has some work to do.
If you take the time to read past the headlines and crack a filing now and then, you're probably ahead of 95% of the market's individual investors. To stay ahead, learn more about how I use analysis like this to help me uncover the best returns in the stock market. Got an opinion on the margins at General Dynamics? Let us know in the comments below.

• Add General Dynamics to My Watchlist.

Seasonality might be the only thing pushing the market forward

Investors are more uncertain about the stock market’s future today than at any other time during the past six years. Thirty-eight percent of investors polled by the American Association for Individual Investors are in the “neutral” camp — a six-year high. Unfortunately, uncertainty is no investment strategy. It takes fact-based conviction to succeed in investing. So what are the facts?

Volatility: Bad For Stocks

Volatility in the past six months has been off the charts. Volatility is more than just the performance of the Volatility Index or VIX. Volatility includes the volume and conviction associated with the recent roller coaster.

During the past six months, the Dow Jones has seen 38 (almost every third trading day) 90% days. A 90% up day means 90% or more of trading volume and point moves were to the upside, thus a 90% down day is exactly the opposite. Of those 38 90% days, 16 happened to be to the upside, 22 to the downside. That is highly unusual. I’ve read interpretations stating that high-volume, 90% up days (also called breadth explosions) are bullish for stocks.
Before drawing conclusions, let’s try to decipher the emotions that cause 90% days. Fear, panic and certain news events cause severe down days. Most up days seem to be caused by positive news rather than a fundamental change.
In summary, we have erratic news-based buying and panic-inspired selling with 58% of the 90% days being down days (Dec. 19 was the latest). This doesn’t look like the beginning of a new bull market to me.

Fundamentals: No Change

The U.S. financial system got into trouble because of falling real estate prices. The European financial system got hammered by sovereign debt defaults.
Now, U.S. real estate prices continue to fall, and entire European countries continue to struggle with pure survival. Neither the U.S. nor the European debt! crisis has been dealt with properly.
QE2 was all the rage at the beginning of 2011, but its effect was limited and short-lived. The European Central Bank’s charter prohibits outright QE where newly printed money is given to banks.
However, the ECB has expanded its repurchase operation to three years. European banks can borrow money from the ECB for 1%. With the borrowed money, banks can now do what the ECB isn’t allowed to — buy more toxic bonds from Greece, Italy, Spain, etc.
At first glance, this looks like a profitable symbiosis. Banks pay 1% and get paid 3%, 4% or more via their bonds. Unfortunately, banks forget that they should be concerned about the return of the money more than about the return on their money.
Banks buying more unstable sovereign debt is a short-term Band-Aid but a long-term recipe for disaster. The expiration date of the “long-term disaster” label might well run out early and bite banks and investors in the butt sooner than expected.

Keep It Simple

The past two years have made one thing painfully clear: I can’t predict the news and how the market reacts to news. Often there’s no rhyme and reason; that’s why I don’t even try.
What I can do is extrapolate the market’s signals via technical analysis. The chart below shows some of the trend lines and Fibonacci levels I follow. The S&P 500 shows remarkably consistent respect for trend lines, Fibonacci levels and other support/resistance points.

Earlier in 2011, the S&P got close to a multi-decade trend line that ran through 1,378 in May. Slightly lower was important Fibonacci resistance at 1,369. Additional Fibonacci resistance was found at 1,382.
Based on this resistance cluster,! the Apr il 3 ETF Profit Strategy update stated that “In terms of resistance levels, the 1,369-1,382 range is a strong candidate for a reversal of potentially historic proportions.”
The May top at 1,369-1,382 made sense because sentiment was very bullish and seasonality was turning bearish (sell in May, go away).
In October, once again seasonality, sentiment and technicals were lining up for a major buying opportunity. The Sept. 23 ETF Profit Strategy Newsletter predicted that “From its May high at 1,370 to its eventual low, the S&P will likely have lost about 300 points (22%). This kind of move validates a counter-trend rally. The plan is to square short positions and buy long positions around 1,088. The rally, once under way, will probably re-inspire a certain degree of confidence into the market before it runs out of steam. The most likely target for this rally is S&P 1,266-1,282.”

2012 Outlook

The outlook for 2012 doesn’t look good. Only some version of QE3 and more aggressive ECB intervention can mask up the technical damage visible on all major charts.
The rally from the October lows still is within the confines of a counter-trend rally and has yet to move above common Fibonacci resistance and two major trend lines.

Short-Term Outlook

The Dow Jones and S&P 500 have managed to exceed their early December highs while the Russell 2000 and particularly the Nasdaq are lagging behind.
The euro — the driving force behind the early 2011 stock and gold (NYSE:GLD) and silver (NYSE:SLV) rally — is remarkably weak and has not confirmed the S&P’s recent strength.
It seems like the generals (S&P and Dow) are marching ahead while the troops (Nasdaq and euro) are following behind. An army in disunity can’t conquer, and a fragmented market is a weak market.
Seasonality might push stocks a bit higher, but the seasonal tailwind will calm significantly in ea! rly 2012 . Sentiment once again is turning bullish (a contrarian indicator), and technicals are looking weak. It seems like another high-probability setup (like in May and October) is in the making.
The ETF Profit Strategy Newsletter provides a short-, mid- and long-term forecast along with the target level for this rally and the support that, once broken, will usher in the next leg of the bear market.
This article is brought to you by ETFguide.com. ETFguide is the information leader on exchange-traded funds because of its vendor-neutral approach and its progressive reporting style. Unique features include an ETF bookstore, a monthly e-mail newsletter, and subscription based ETF portfolios.

CEOs Claim Big Pay Days in 2011 Amidst Controversy

Despite current controversy over executive pay, recent filings with the?Securities and Exchange Commission show that companies continue to hand out large compensation packages to their CEOs. Many top executives are now making upward of $50 million annually according to the publication. The companies justify the big payouts by saying it’s simply a cost of doing business and it’s necessary to attract and retain talent in their upper ranks, but other experts disagree.
USA Today quoted University of Toronto business school dean and author of?Fixing the Game: Bubbles, Crashes, and What Capitalism Can Learn from the NFL,?Roger Martin, who said, “Corporate boards are tone deaf to the times, as are CEOs who justify this much compensation.?Companies are fooling themselves if they say this is what’s required to retain or attract talent.” Eleanor Bloxham, head of corporate watchdog the Value Alliance said, “These kinds of things go on because too few people, especially institutional shareholders, are saying no,” per USA Today.
Big earning CEOs in 2011 include Apple’s?(NASDAQ:AAPL) Tim Cook who claimed $378 million in total compensation, Qualcomm’s?(NASDAQ:QCOM) Paul Jacobs at $50.6 million, Tyco International’s?(NYSE:TYC) Ed Breen bringing in $68.9 million, JCPenney’s?(NYSE:JCP) Ron Johnson with $51.5 million, and recent new comers to the $50 million plus club, Disney’s?(NYSE:DIS) Robert Iger and Starbuck’s (NASDAQ:SBUX) Howard Schultz. Iger’s newly negotiated contract with Disney increases his base salary 43% to at least $50 million annually through 2015. USA Today?quoted a statement by Disney that says the new contract is intended to “secure access to Iger’s leadership and experience for an extended period and to provide a path to succession with a smooth transition of! his dut ies and responsibilities.”

Why Kodak Needs to Declare Bankruptcy

It's never a happy time when a cultural icon is brought to its knees. However, in the case of photography pioneer Eastman Kodak (NYSE: EK  ) , it's the only play left in the book. Long gone are the days of photographic film rolls, and with them the reputation of a once-great company. After frantic attempts to sell or license the company's vast portfolio of patents, it seems bankruptcy is the only option.
Enough's enough
It's not surprising that Kodak hasn't been able to lock down a buyer for its large collection of digital patents. With the company's grim financial condition all over the news, potential bidders would rather wait for a more favorable bankruptcy auction of the patents. For this reason, Kodak filing for protection under Chapter 11 is not only imminent, but also necessary.
Big names such as Apple (Nasdaq: AAPL  ) may be interested in Kodak's suite of patents, which could be valued between $2 billion and $3 billion. Apple buying the rights to these patents would be somewhat of a "Kodak moment," as Kodak once filed a suit against the Mac-maker for patent infringement.
Apple wasn't the only patent litigation filed by Kodak. In recent years it's seemed Kodak's new business model was to leverage their intellectual property by winning patent cases against industry peers. Unfortunately that strategy hasn't panned out that well.
Fading away
As my Foolish colleague John Maxfield discussed, Kodak's fall from grace is the result of the innovator's dilemma, a misfortune in which a company can no longer keep up with disruptive technologies in its industry. However, the lack of product innovation wasn't the only drain on the company. Failure to successfully reinvent itself in new industries like printers was also at fault.
By filing for bankruptcy, Kodak will undoubtedly sell its nearly 1,100 patents and close the final ch! apter in its more than a century-long history. Is seeking protection under Chapter 11 a card Kodak should have played years ago? Let us know your thoughts on the matter in the comments section below.

• Add?Eastman?Kodak?to My Watchlist.
• Add?Apple?to My Watchlist.

Oil Prices Hit New Record at $97 a Barrel as the Dollar Weakens and Commodities Continue to Soar

President Obama delivered a State of the Union address Tuesday night that by the account of his own advisers is more campaign document than a plan for governing. He's running against Republicans in Congress, Reaganomics, wealthy bankers and inequality.
Normally a President at the start of his fourth year would be running on his record, accentuating the legislation he's passed. Mr. Obama can't do that with any specificity because the economic recovery has been so weak and the legislation he has passed is so unpopular. So last night he took credit for the shale gas revolution he had nothing to do with and proposed new policies to "spread the wealth around," as he famously told Joe the Plumber in 2008 before he took the words back. We thought he meant it then, and now he's admitting it.

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Perhaps this will work if Republicans nominate a standard-bearer who is damaged, or too cautious or guilty to challenge this politics of envy. Mr. Obama clearly has Mitt Romney and his 14% effective tax rate in his sights (see the editorial nearby). The President will try to portray Mr. Romney as Mr. 1%, and if the Republican settles for defending the current tax code, he will lose. He needs a tax reform proposal of his own, as well as the self-confidence to argue for it in the same moral terms that Mr. Obama will attack him.

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European Pressphoto Agency

Meantime, as Mr. Obama begins his fourth year in power it's a good moment to recount the economic record that he'd rather not talk about. The President inherited a deep recession, but in political terms that should have been a blessing. History shows that the deeper the recession, the sharper the recovery, and Mr. Obama was poised to take credit for the economy's natural recuperative powers. Instead, we've had the weakest recovery since the Great Depression and stubbornly high joblessness.
The nearby chart compares rates of quarterly growth during the Reagan and Obama economic recoveries. The comparison is apt because both recoveries followed deep recessions in which the jobless rate reached more than 10%. Once the Reagan recovery got cooking, in 1983, growth stayed above 5% for 18 months and never fell below 3.3% for 13 consecutive quarters.
In the Obama recovery, growth has never exceeded 4% in any quarter and fell off markedly in mid-2010 through the third quarter of 2011. For the first nine months of 2011, growth averaged less than 1.2%. The economy finally picked up again in the fourth quarter, but still at a rate that is subpar for a recovery that long ago should have become robust and durable.
As he runs for re-election, Mr. Obama is trying to campaign as an incumbent who is striving to help the economy but has been stymied at every turn by Congress! . Not ev en MSNBC can believe this. For two years he had the largest Democratic majorities in Congress since the 1970s and achieved nearly everything he wanted.
The New Yorker magazine this week has posted on its website a 57-page memo that economic adviser Larry Summers wrote to Mr. Obama in December 2008. It lays out nearly his entire agenda for the "stimulus," reviving housing, the auto bailout and saving the financial industry. If anything, the memo overstates what would be needed to stabilize the financial panic, but nearly all of the stimulus spending priorities that the memo deemed "feasible" made it into law. They simply didn't work as promised.
The Pelosi Congress also passed ObamaCare, Dodd-Frank, cash for clunkers, the housing tax credit, and much more. The only Obama priority it didn't pass was cap-and-trade, which was killed by Senate Democrats.
Mr. Obama's regulators also currently have some 149 major rules underway, which are those that cost more than $100 million. The 112th Congress hasn't been able to kill a single major rule. The most it has been able to do is extend the Bush tax rates—which helped the economy by avoiding a tax shock—and slow the rate of increase in federal spending. This President has been "obstructed" less than anyone since LBJ.
Mr. Obama clearly has a spring in his step these days, figuring that the public hates Congress and thinks Republicans run it, that the GOP will field a weak presidential candidate, and that he can fool the public into believing only Mitt Romney's taxes will rise if Mr. Obama wins a second term. He has only one big obstacle: his record.
Printed in The Wall Street Journal, page 16

Maxygen Surges 23% on Sale of Astellas Joint Venture Stake

Maxygen Inc. (NASDAQ: MAXY) shares surged to close at $5.14 today, gaining more than 23% on the day after the company announced that it would be selling its stake in Maxygen Astellas Joint Venture to Astellas Pharma Inc. The deal is likely to be worth $76 million. The venture had been designed to develop protein based therapy for treating autoimmune conditions. The drugs are to be designed to reduce immune system activity. Both the companies started their collaboration in 2008 and formed the joint venture, Perseid in 2009. The companies are looking to finalize the deal during the second quarter of the year. With this deal, Astellas will get almost 100% stake in the candidate.

Maxygen recently announced its fourth-quarter and full-year results. The company reported its net income for the fourth quarter at $69.9 million, up from a loss of $3.7 million a year earlier. The company announced its quarterly revenue at $5.9 million, down from $13.3 million in revenue it had reported a year earlier. Maxygen also announced its full year results. The company reported its net income for the full year at $68.9 million. It had incurred a loss of $32.4 million in the previous year.

Maxygen is a biopharmaceutical firm involved in the development of improved versions of protein drugs. The company makes use of its MolecularBreedign directed evolution technology platform. It also uses its protein modification expertise. The company also works in the field of biocatalytic process technologies for industrial chemical applications. The company was formed in 1996 and is based out of California.

The company stock is currently trading at $5.05, up 22.87% from its previous close. Maxygen stock opened at $5.42 and touched the high of $5.45. The stock's lowest price in today's session is $4.94. The company stock's EPS is $2.35. The company stock has traded in the range of $3.75 and $7.19 during th! e past 5 2 weeks. The company's market cap is $151.89 million and its P/E ratio is 2.15.

Maxygen reported its total current assets at $141.918 million for the year ending Dec 31, 2010. Its total assets were worth $146.986 million for the same time period. Maxygen had valued its total liabilities at $20.883 million. The company had reported its revenue at $37.601 million and its gross profit for the year at $37.601 million. Maxygen' net income for the year stood at $68.884 million.

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Tesla Plunges 19%, Up 7% in After Hours: 2 Engineers Quit, Says Bloomberg

Shares of electric car maker Tesla Motors (TSLA) plunged $5.46, or 19%, to $22.79, late in today’s session but regained 7% in late trading after the company said its head of engineering, Peter Rawlinson, for chief of chassis engineering for its “Model S” line, Nick Sampson, quit, as related by Bloomberg’s Alan Ohnsman.
Rawlinson departed to attend to personal matters, the company said, and Sampson is said to have “transitioned” away from working on the Model S, Ohnsman notes.

Top 10 Advantages of Tv Rentals

Have you been in search of a brand-new Tv? If that’s the case, have you thought about leasing as opposed to purchasing? Listed here are 10 benefits that Tv rentals have over buying a brand new set. –You could possibly possess the capacity to rent a Tv that’s larger and than you may have had the opportunity to spend for ought to you be buying. –Christmas is generally an pricey time, so even once you would love or call for a brand new Tv, you may not be able to spend out for just 1. By leasing, you’ll get your brand-new Television above time to look at some Xmas telly. –Should you purchase a Television, then understand you’d like some thing just just a little bigger or with superior specs, it is past also far. Obtaining a Tv rental deal, you will most most likely possess the ability to change your contract.
–Should you obtain a Television, then have an understanding of you would like some thing just just a little bigger or with superior specs, it is previous as well far. Obtaining a Tv rental package deal, you will most likely possess the ability to change your contract. –If you’re keen to buy a Tv quicker or later, but your own personal residence your skills on is presently a bit as well expensive, you might would like to rent for almost any yr immediately after which flip to buy once the cost to purchase has fallen.
–If you are a student who need a Television for almost any couple of decades, but cannot pay for to buy, leasing may be the great temporary situation. –If you might be residing in shared accommodation and don’t want the irritation of splitting the price of the tv simply to face a problem by what connected to it whenever you amongst you moves out, some pot rental agreement may be the perfect situation.
–Not just that, nonetheless, you may possess the capability to rent every little thing that you will demand to the new dwelling, for instance automated washers, hairdryers, dish washers plus ! consider ably far more. In this way, you are able to bundle your brand-new household from the first day and merely stagger your purchases to anytime you definitely can manage them. –The issue with obtaining a wonderful new Television is you often want to include additional home amusement facilities to create the most of it. That is frequently costly, whereas you are able to rent all of them and obtain an excellent program within your dwelling straightaway.
–The problem with acquiring a excellent new Television is you regularly wish to add further property amusement amenities to create probably the most of it. That is typically pricey, while you are able to lease all of them and obtain an superb program within your household straightaway. –In the complete with the rental contract, you may locate the use of allowing it to operate on as well as your existing Television, or you may start a brand-new contract obtaining a extra up-to-date model. For those who feel Tv rental may well be the ideal solution for you personally, then you may wish to begin searching for an ideal set. And once you are leasing a Television, you might need to look at other merchandise you could possibly minimize by leasing.
Discover out much more info about tv hire Perth with my top recommended tv rent Perth blog.

Michele Bachmann Awaits House Opponent

Rep. Michele Bachmann (R., Minn.), a former GOP presidential hopeful, announced Wednesday she would seek a fourth term in Congress, but she likely will have to wait for Minnesota redistricting before a Democratic opponent emerges.

The announcement came three weeks after the congresswoman officially suspended her campaign because of an unimpressive sixth-place finish in the Iowa caucuses, a race in which she hoped a strong result would catapult her chances for the GOP nomination.
"I'm looking forward to coming back and bringing a strong, powerful voice to Washington, D.C.," Bachmann said, according to The Associated Press.
No Democratic opponents have yet emerged because they await formal redistricting by the state legislature, Ken Martin, chairman of Minnesota's Democratic-Farmer Labor Party, told the AP.
Bachmann won Minnesota's sixth district in the 2010 elections against Democrat Tarryl Clark, 52.5% to 39.8%.
Of Bachmann's three races, her narrowest victory came in 2008 when she beat Democrat Elwyn Tinklenberg, 46% to 43%, in a race that had been deemed a toss-up ahead of the election.
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Why the Street Should Expect Big Things From Zoltek

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.
Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Zoltek (Nasdaq: ZOLT  ) out of line?
To figure that out, start by comparing the company's inventory growth to sales growth. How is Zoltek doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 18.1%, and inventory increased 26%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 11.8%, and inventory dropped 2.1%.
Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)
A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. W! e call i t "positive inventory divergence."
On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.
What's going on with the inventory at Zoltek? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 73.7%. On a sequential-quarter basis, work-in-progress inventory was also the fastest-growing segment, up 12.9%. Although Zoltek shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.
Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide the market's best returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.
I run these quick inventory checks every quarter. T! o stay o n top of inventory and other tell-tale metrics at your favorite companies, add them to your free watchlist, and we'll deliver our latest coverage right to your inbox.

• Add Zoltek ?to My Watchlist.

Banks and other financial stocks skidding after mediocre earnings

Stocks jumped Tuesday morning, supposedly because China’s Q4 GDP growth rate slowed to 8.9%. Slower is better, we’re told, because it means Beijing can ease credit and inflate the great Chinese bubble again.
Exactly how this logic works is a bit hard to fathom. But investors didn’t have much time to fathom it yesterday: The stock market’s burst of strength began to fade shortly before 10 a.m. and continued to tail off until late in the session. The Dow closed 60 points in the green, noticeably stronger in percentage terms than the broader list of stocks.

Beneath the surface, a number of cracks are starting to appear in the market’s armor. For example, banks and other financial stocks had mounted a hopeful rally during the New Year’s first few sessions, but a mediocre earnings report from JPMorgan Chase (NYSE:JPM) on Friday and a somber one from Citigroup (NYSE:C) yesterday sent the financials skidding again.
I still think JPM is unnaturally cheap at just over 7 times estimated 2012 earnings. I’m also delighted that Jamie Dimon’s empire bought back $950 milllion worth of stock in the December quarter — a modest dividend hike seems probable at the March 2012 directors’ meeting.
However, I also recognize that we’re in a touchy period for the global economy and financial system. Accordingly, I’m trimming my buy limit on Morgan — one of the world’s strongest banks and an undoubted survivor — to $37 (from $40 previously).
At current levels, I’m projecting a total return of 15% to 35% in the year ahead for JPM. That’s an abnormally wide spread, reflecting the exceptional degree of uncertainty we’re grappling with.
Another curiosity, and a potential “crack,” has showed up lately in the roster of new highs and lows. Since Jan. 3, despite an upward tilt in the headline ! indexes, the number of individual Big Board stocks touching new 52-week highs has dropped more than 30%, while the number of new lows has risen.
So there’s plenty of reason for caution amid the Street’s euphoria. I wouldn’t put on any additional shorts or other hedges just yet. However, I would be very sparing with new purchases.

Values Still Look Pretty Good With Gold Mining Shares

The sector has gotten roughed up in the past two sessions as operational problems emerged at several companies — including Hecla Mining (NYSE:HL), a silver producer, and Kinross Gold (NYSE:KGC).
Newmont Mining (NYSE:NEM) also disappointed some of its fans yesterday by projecting somewhat lower copper production in 2012 and higher operating costs than the consensus had expected. Copper, though, accounts for only about 8% of NEM’s sales.
Thus, we’re not talking about an earth-shaking change in the company’s profit outlook. At about 10 times estimated 2012 earnings, Newmont sports limited downside and a potential total return of 25% or more in the next 12 months.
Pay up to $62.80 for NEM.

HP's PC Spin in Doubt: Deals to Watch

Hewlett Packard(HP) may step back from its controversial personal computer spinoff plan as management works feverishly on definitive plan for the company, the Wall Street Journal reported Wednesday.

Earlier in October, HP took a controlling stake in British software giant Autonomy moving the company closer to completion of its $10.3 billion purchase announced in mid-August. It was all part of former CEO Leo Apotheker's ambitious attempt to turn the company from a PC maker to a services and software specialist more in the mold of IBM(IBM)andSAP(SAP), which he led for over two years. The strategy was to spin out its computers and handset divisions in favor of Autonomy's software capabilities that could be grown into existing security and services business lines.
The company is currently reorganizing after firing CEO's Mark Hurd and Leo Apotheker in the past 12 months. After the board approved Apotheker's plan, he was then ousted and replaced with former EBay (EBAY)CEO Meg Whitman. The extent of H.P.'s new strategy to follow Apotheker's plan or revert back to its traditional operating structure is yet to be fully determined under Whitman's leadership. Last week, she said at a Fortune Magazine panel that the company would make a decision by the end of October.
In her introductory call, Whitman made it clear that while the Palo Alto, California -based company had a new leader was in place, HP would likely follow Apotheker's plan announced in mid-August. "I think the strategy is right. The initiatives that we undertook on August 18 are right," said Whitman. Responding to analysts questions about how long it will take for HP to solidify a strategy Whitman said, "The best thing we can do is get to a decision on PSG as fast as possible. This dec! ision, i t's not like fine wine. It's not going to get better with age."
She did however say that she would take a "hard look" at the overall strategy. Later in the call introducing Whitman as CEO, chairman of HP's board Ray Lane downplayed the notion that the company would transform itself. "Hopefully, we'll see a bigger software portfolio and we'll see more value-added services at HP, but we have $120 billion of hardware business that we care dearly about," Lane said.
Last week in a story about whether HP could make a transition to a services and software focus from PC's and hardware, Richard Kugele an analyst at Needham & co said, "To be the company Leo envisioned, you would need to do many acquisitions." Later that week, at a forum to discuss California's economic future, Whitman said that the company is definitively not looking to make more near-term acquisitions. In TheStreet's October 4th interview with Kugele, he said, "I suspect that if clearer heads prevail, the business may be kept (albeit now weakened). webOS should find a home because I feel it was a good OS, just needed some investment and MANY more apps."

In an October statement announcing its control of Autonomy, HP said the company will be run independently and its founder and CEO Mike Lynch will continue to head the Cambridge, England -based software-maker, reporting directly to Whitman. The decision gives HP and Whitman room to continue its P.C. operations and continue with the merger. Part of the reason Autonomy is running independently for now is only roughly 2% of current HP revenue comes from the software related businesses it's looking to build. With Autonomy revenue added, software will only be bolstered by roughly $1 billion or roughly 3% of overall revenue, a small piece of larger $100 billion-plus annual revenue that come from its overall PC, printing and server and network businesses.
HP shares are down nearly 40% year to date and ! are one of the worst performers in the Dow Jones Industrial Average -- They've risen since Whitman's introduction at the end of September.
Liz Claiborne (LIZ) said Wednesday it is selling off several of its namesake and Monet brands to J.C. Penney(JCP), its Dana Buchman line to Kohl's(KSS) and its Kensie brand to Bluestar Alliance. The sales will net the New York -based company $328 million in cash.
Shares of Liz jumped over 40% on the announcement and as high as $7.24 in early trading.
For J.C. Penney and its $267 million Liz Claiborne and Monet purchase, it's an accelerated push to build classic fashion lines as newly hired CEO Ron Johnson prepares to replace current chief executive Mike Ullman, who is stepping down in November. Johnson left his post as a retail executive at Apple(AAPL) in June to help the struggling retailer revamp sales and he was given a seat on the J.C Penney's board of directors in August ahead of taking the company reigns this fall.
In a press release announcing the business line sales, Liz Claiborne said it will now focus on its Kate Spade, Juicy Couture and Lucky Brands. The company also agreed with Donna Karan International to terminate its DKNY Jeans and DKNY Active licenses.
Earlier this year, Liz Claiborne sold fragrance brands to Elizabeth Arden and its Mexx business young women's business line to Gores Group, netting $58.4 and $85 million in cash respectively.
Of today's sales, Liz Claiborne Chief Executive William L. McComb, Chief said, "Consistent with our stated goal to de-lever the Company, these proceeds will be used to further reduce debt." The company said as a result of the sales it expects its debt to fall to as low as $270 million --current debt levels are $768 million according to quarterly filings as of July 2nd.
The company also lowered its 2011 earnings guidance, saying earnings before int! erest, t axes, depreciation and amortization will fall to as low as $80 million from prior expectations as high as $120 million. It also slashed its 2012 outlook by as much as 40% to $130 million from $220 million.
The lower earnings guidance and brand sales come at a time of great uncertainty for retailers. CEO McComb said in his announcement of brand sales that, "At the close of these transactions, at a time when most economists in the world are now agreeing that major European and the US markets are facing significant risks of another recession, we will be a more appropriately levered, more capital efficient, growth-oriented company."
The New York based company has seen its operating losses accelerate from $8.5 million to $64.5 million this year. It's also failed to be profitable in any year since 2006 and hasn't had a profitable quarter since this time in 2007.

Liz Claiborne shares are down nearly 8% this year to $6.60 and have been cut by over 75% since reaching highs of above $45 a share in 2007. Over that time, its annual revenue has fallen from levels as high $4.4 billion to $2.5 billion.
When all of the brand sales are completed and its namesake brand is absorbed into J.C. Penney, the company will find a new name to reflect its remaining Juicy Couture, Lucky Brand, and Kate Spade lines. Referring to remaining fashion lines, McComb said, "we are exploring options for a new corporate name that will better reflect our keen focus on building and growing our three global lifestyle brands.
In a separate press release announcing the purchase, incoming chief executive Ron Johnson said that the Liz Claiborne and Monet brands will bolster J.C. Penney, "we seek to be part of our customers' everyday lives, ensuring that we offer the brands that are most relevant to them is a crucial component in transforming JCPenney into America's favorite store. The brands we are acquiring hold tremendous appeal for our customers! ."
Wh en Johnson becomes CEO of the Plano, Texas -based company in November, he'll hope to bolster J.C. Penney's stock price, which has lagged the S&P 500 and is down nearly 7% year to date. The company, like other retailers Saks(SKS)and J. Crew has also been hit hard by the financial crisis and recession. Currently its share price of just over $30 is a fraction of highs above $80 a share reached in 2007.
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After Loss, Romney to Release Tax Returns

So, show of hands: who really thought that former Massachusetts Governor and current GOP presidential hopeful Mitt Romney would win South Carolina?
My hand will stay firmly by my side. I expected Romney to lose South Carolina. I also still fully expect him to get the nod from the party at the GOP Convention despite noting earlier that no Republican candidate for President has ever failed to win South Carolina and gone on to secure the nomination. I think he’s the exception. (No, this isn’t an endorsement, it’s an educated guess.)
I know South Carolina pretty well. I grew up in North Carolina (much of my family still remains) and spent many a summer in Greenville; I’ve been to family reunions in Georgetown; been porch sitting in Rock Hill and wandered around the naval base in Charleston with my brother. And yes, I once bought a Fiat in Pumpkintown. With my background, I feel confident that I easily could rattle off ten reasons why Romney lost South Carolina.
Not releasing his tax returns isn’t one of them.
Despite that fact, which I’m sure his handlers already know, Romney is still getting grief about not releasing his returns. This week, apparently still reeling after the primary loss to former House Speaker Newt Gingrich, Romney is going to do something he’s never done before: make his tax returns public. He plans to release his 2010 returns and offer an estimate of what he’ll pay in 2011 (someone get that tax preparer a redeye quick).
I don’t think it will make much difference in the race at this point – which is exactly why Romney is releasing the returns. This is his Obama birth certificate moment. I think Romney realizes that voters are going to talk about those returns until he makes them public. The more that voters focus on the lack of returns, the worse he’s going to look. Romney’s supporters want to move the discussion along.
So what w! ill thos e tax returns reveal? My guess is nothing we haven’t heard already. We know that he’s rich. Crazy rich. We know that he has offshore accounts. And we know that he pays “about 15%” in taxes.
What else is there to see? I’m sure there’s something there to pick on. But I don’t think we’re going to see any game changing information in those returns. But it sure makes good fodder for Gingrich, who told NBC’s David Gregory:

If there are things in there that can be used against him, we better know it before the nomination. The last thing Republicans want to do is nominate somebody that collapses in September.

You know, like an old ethics violation related to federal tax laws.
Good thing Gingrich is just looking out for the party.
All that said, when the returns are released later this week, I think we’re going to see a flurry of activity that turns out to be pretty much a non-event. I think, by midweek, we’ll all be saying, “There’s nothing to see here, folks, let’s move along.”

The Real Reason Daily Deals Are Doomed

Groupon's (Nasdaq: GRPN  ) daily deals are a dream for consumers. Who wouldn't want half off on dinner at that kitschy restaurant across town or a round of golf on the cheap with your buddies? But for the small businesses Groupon needs as partners, the benefits aren't as clear.
A study by Rice University has found that 32% of businesses surveyed lost money on the Groupon promotion, and more than 40% said they would not partner with Groupon again. Another study said that only 36% of deal users spent beyond the value of the deal. Nearly all businesses need repeat customers to survive, and the daily-deals model is no different. While Groupon's promotion with Gap (NYSE: GPS  ) attracted a lot of attention, daily-deal sites generally rely on small business partners such as restaurants or service businesses like salons and spas so they can offer their customers a variety of new and unique experiences.
Race to the bottom
There are several problems businesses have with the Groupon model. The deal is supposed to serve as an ad for the business, attracting new customers, but just one in five daily-deal users comes back. The deal undermines the regular full-price-paying customers the partnering businesses already have, essentially encouraging customers they don't want and discouraging the ones they do, or gives a discount to a customer who would have paid full price. Many retailers think they are only creating an expectation of continued discounting, and the new customers will just hop on to the next deal when they're done with theirs. The deals seem to instill loyalty to the website offering them instead of the end businesses, and retailers feel pressure to offer the discounts to match their competitors, even though the end result seems to be squeezing margins across participating businesses.
Two's company, 300's a crowd
Currently, there are ! more tha n 300 daily-deal sites, with heavyweights such as Microsoft (Nasdaq: MSFT  ) , Google (Nasdaq: GOOG  ) , and Amazon.com (Nasdaq: AMZN  ) now gunning for a piece of the action. Some consumers have complained of "deal fatigue" from the constant barrage of emails, and 87% said they would purchase more deals if they were conveniently located on one site. The industry has virtually no barriers to entry, and it seems as if Groupon's lead has come from its clever marketing, first-mover advantage, and huge sales force, which eats up so much of its budget that it's still operating at a loss. Consolidation seems to be inevitable, and innovation will be necessary for the industry to be sustainable.
Foolish takeaway
With Internet powerhouses like Facebook bowing out of the daily-deal racket and Yelp cutting its deals sales staff in half, it looks as if the boom may be over. Investors in deal sites Travelzoo (Nasdaq: TZOO  ) and OpenTable (Nasdaq: OPEN  ) don't need be reminded of that, as both stocks are down more than 60% from their 2011 highs. Until someone can develop a daily-deals model that benefits all parties involved, it looks as if this phenomenon is just the latest version of that old adage: "If it's too good to be true, it probably is."
The daily-deals industry is a quickly changing one. Keep up with any developments in the battle over discounts by adding these companies to My Watchlist.

• Add Travelzoo to My Watchlist.
• Add OpenTable to My Watchlist.
• Add Microsoft to My Watchlist.
• Add Groupon to My Watchlist.
• Add Gap to My Watchlist.
• Add Google to My Watchlist.
• Add Amazon.com to My Watchlist.

8 Best Travel Apps for Domestic and International Travel

Before you pack your holiday bags for a trip to visit your folks or for a European Getaway, the travel aficianados have advice for what to pack in your smallest piece of luggage ��your smartphone. The apps recommended by prolific freelance travel and food writer, Gayle Keck, will help you phone home, find your destination, secure restaurant reservations and translate languages. The staff at travel book publisher, Avalon Travel, has app recommendations for self-guided walking tours, finding rest areas on car trips, navigating most airports, keeping your air itinerary handy and getting around subway systems.

Gayle Keck ( a freelance travel and food writer) Recommends:

-Skype? (iOS, Blackberry, Android and Select Verizon phones)
“If you’re traveling internationally it’s indispensible if you have access to Wi-Fi. There are incredible cost-savings. I’ve usually had good luck with call quality.”
-Google Maps (Android, Blackberry, iOS, Nokia or S60 and Windows Phone)
“If I’m driving in the US, I look to see what the traffic is like. I may switch my route based on traffic.”
-OpenTable (Android, Blackberry, iOS, Windows Phone and webOS)
“If I already know of a restaurant in a particular location, it’s a fairly easy way to make a reservation on the fly.”
-Google Translate (iOS and Android)
“It’s good enough to get by when you can’t find someone who speaks English. You can type in whole sentences.”

Favorite Apps of Avalon Travel Books Staff:

-Truck Stops USA (iOS)
“During our cross-country move I used the Truck Stops USA app for finding rest areas, services, weigh stations (had to take the moving truck through the scales), local fuel prices, and current weather conditions. It was pretty ! handy ha ving all that information in a single app.” �� Gayle Hart, Web Content Editor.
-Metro Paris Metro Subway (iOS)
“If you��re planning a trip to Paris, the Metro Paris Subway app is a must! There are similar apps for the London Tube and the NYC subway, but the Metro Paris one is the best.” �� Sierra Machado, Publishing Assistant.
-Trip It (iOS, Android Blackberry and Windows Phone 7) and GateGuru (iOS and Android)
“When I��m taking a vacation and flying to a destination, I like keeping all my itinerary information in one place with the Trip It app. I also love Gate Guru for finding what shops, restaurants, and service options a particular airport has. It’s prefect for layovers and long breaks between flight connections because I don’t have to hike the entire airport with luggage in tow.” �� Gayle Hart, Web Content Editor.
-Rick Steves’ Walks & Tours apps (audio tours on Android and iOS, mapped tours iOS)
Want an accomplished tour guide on your trip without constant supervision? Avalon Travel author Rick Steves shows you around Europe with audio tours of cities and attractions. An interactive walking tour where you can click on tourist attractions and restaurants for detailed information is available for iOS users only.
Don’t see your phone or phone’s operating system on your favorite app? Search for a similar app compatible with your smartphone. You may find an app with a similar name by the same app creator.
For more vacation articles from Mint.com, checkout Day Trips: The New Cheap Vacation, Getting Home for the Holidays on a Budget and Money-Saving Tools for Travelers.

Egypt Scales Back Debt Sale, Supports Pound

The debt sale scheduled for Monday in Egypt that had been postponed from last week took place, but on a smaller scale than originally anticipated due to low demand. And on Tuesday, the country’s central bank took steps to support the Egyptian pound, but would not specify how much they had devoted to the effort.

According to Reuters, the debt sale previously reported by AdvisorOne had been planned for more than 15 billion Egyptian pounds ($2.53 billion) of short-term debt overall, with 8 billion pounds of that in 91-day bills on the market. However, when the sale actually took place, it was scaled back to only 7 billion pounds, according to an Egyptian banker. Other categories of debt were also reduced because of "subdued demand" in the marketplace. Another dealer said that he had not seen any foreign demand in the market at all.

Meanwhile, the Egyptian pound, which had fallen to its lowest level in 6 years, finally got some support from the country’s central bank, which intervened in the market to boost the currency against the dollar. Hisham Ramirez, the deputy governor of the central bank, was quoted in the report as saying, "We intervened in the market." He would not specify to what extent.

The nation’s stock market is expected to reopen next week, and the action was seen as an advance to restore confidence in the currency before that happens. Economist John Sfakianakis of Banque Saudi Fransi said in a statement that he had not expected the bank to intervene before it had dropped to 6 pounds to the dollar; on Monday, before the intervention, it had closed at 5.952 to the dollar.

"They are doing it earlier than the market had expected, which shows that they are taking seriously the issue of pound depreciation and they will intervene at any cost," he said.

Leading Indicators Actually Lagging

The Conference Board has just released the “Leading Economic Indicators” for the month of February.? While these arguably don’t really lead, there was another drop to -0.4% for February.? Both components, the “coincident” and “lagging” indicators, came in at the same -0.4% reading.? Estimates from Bloomberg were for a reading of -0.6%.? This data follows a slight increase in January, although that was revised slightly lower.

The CEI drop was driven by continued declines in employment and industrial production. The drop in the LEI continued the general downward trend that began in July 2007, but what interesting is that the data noted that its rate of decline has moderated slightly in recent months.? Before getting too exited about the data, the Conference Board also noted that the six-month decline in the CEI is the largest since 1975 and the data suggests that the economic recession that began in December 2007 will continue in the near term.
The funniest thing to consider about the “Leading Indicators” is the name.? Most of the data is actually old and most of the data is actually known before the numbers actually get published.
The S&P 500 Index was at 735.09 as of the close of February 27.? Even with the drop this morning, that index sits at 790.64.? That is a gain of 7%, but the index sits 16% above the low close of 676.53 on March 9.?? Hence, Leading Indicators look like they are lagging, at least in part.
JON C. OGG

Schlumberger Fourth-Quarter Profit Rises as Drilling Booms

Schlumberger Ltd. (SLB), the world��slargest oilfield-services provider, said fourth-quarter profitrose 36 percent as higher crude prices pushed oil companies toboost exploration and production spending around the world.
Net income rose to $1.41 billion, or $1.05 a share, from$1.04 billion, or 76 cents, a year earlier, Houston- and Paris-based Schlumberger said today in a statement. Excluding chargesrelated to a write-off of Libya assets, the company earned $1.11a share, beating by 2 cents the average of 32 analyst estimatescompiled by Bloomberg. Sales climbed 21 percent to $11 billion.
Oil prices advanced 10 percent to average $94.06 a barrelon the New York Mercantile Exchange in the quarter, up from$85.24 a year earlier. The average number of active oil andnatural-gas rigs around the world rose 15 percent in the finalthree months of the year to 3,676, Baker Hughes Inc. data show.
Revenue in its North America region, which excludes Mexico,climbed 6 percent to $3.52 billion while the operating profitmargin was $947 million, or 27 percent.
��North America was really the good upside surprise,�� John Keller, an analyst at Stephens Inc. in Houston, who rates theshares at ��overweight�� and owns none, said in a telephoneinterview. ��The return of deepwater rigs in the Gulf certainlyadded a tailwind during the quarter.�� Keller had estimatedrevenue of $3.45 billion and a 25 percent margin.
Schlumberger reported its best North American marginperformance in more than four years, according to data compiledby Bloomberg.

2012 Outlook

��Uncertainty remains over the outlook for 2012 due to thecontinuing sovereign debt crisis in Europe which places downwardpressure on GDP and oil demand forecasts,�� Chief ExecutiveOfficer Paal Kibsgaard said in the statement. ��Against thisbackdrop, we are planning for growth in 2012, while building therequired flexibility into our resource plans.��
Kibsgaard��s comments were cautious, Bill Herbert, ananalyst at Simmons &! ; Co. in Houston, wrote today in a note toclients.
��Management made a reference to ��building the requiredflexibility into�� its ��resource plans�� in the event of industrydislocations,�� he wrote. ��This is code for throttling back onspending, at a minimum, if warranted.��
The company is expected to earn net income of $1.10 pershare in the first quarter, according to the average of 17analyst estimates compiled by Bloomberg. Kibsgaard toldinvestors on a conference call that consensus estimates are onthe ��high side.��

��Added Uncertainty��

��There is some added uncertainty going into Q1 now interms of the impact of the accelerating drop in North Americanshale-gas activity,�� Kibsgaard said on the call. ��Generally, Iwould say the current consensus is somewhat on the optimisticside.��
Explorers and producers around the world are expected toboost annual spending by 9 percent this year to a record $595billion, James Crandell and Omar Nokta, managing directors atinvestment bank Dahlman Rose & Co., wrote in a Jan. 3 note.
Schlumberger helps companies drill for oil and gas,including using hydraulic fracturing to free the fuel from shaleformations.
Gulf of Mexico
The average number of rigs active in the Gulf of Mexicoclimbed 68 percent to 37 in the fourth quarter, compared with 22a year earlier, according to Baker Hughes.
In the U.S. onshore market, the largest region in the worldfor hydraulic fracturing work, Stephens analysts project an 8percent growth in the number of drilling rigs working this yearcompared with 2011.
Schlumberger rose 1.3 percent to close at $73.80 in NewYork. The shares, which have 31 buy ratings from analysts, fiveholds and one sell, rose 14 percent during the quarter.

CFP Board Mulls Changes to Disciplinary Approach on Bankruptcies

The Certified Financial Planner Board of Standards announced Wednesday that it’s seeking comments by Feb. 17 on whether to modify the way the board handles bankruptcy filings by CFPs.
As it stands now, the CFP Board asks CFP candidates on their initial application if they’ve filed for bankruptcy to determine whether they are “fit for CFP certification,” and in the case of a CFP professional, to determine whether the bankruptcy filing resulted from conduct that would warrant discipline. CFP professionals are asked on their CFP renewal application, which they must fill out every two years, whether they have filed for bankruptcy.
The CFP Board says that it proposes replacing the current disciplinary approach to cases involving a "single bankruptcy filing (bankruptcy-only cases)" with a "non-disciplinary, disclosure-oriented approach" in which the public has access to notice of the bankruptcy filing to assist it in making an informed decision when evaluating whether to work with a CFP professional who has filed for bankruptcy.
Under the proposed approach, the CFP Board says that it “would no longer investigate and the Disciplinary and Ethics Commission would no longer hear bankruptcy-only cases.”
Rather, CFP Board would “verify the bankruptcy filing and note it in the individual’s public profile,” which is available through the Find a CFP Professional and/or Verify an Individual’s CFP Certification search functions on CFP Board’s website, as well as through responses CFP Board provides to individuals who contact CFP Board regarding an individual’s certification status.
This disclosure of the bankruptcy in an individual’s public profile, the CFP Board says, “would continue for 10 years from the date CFP Board is notified of the bankruptcy, whether through disclosure by the individual or discovery by CFP Board.”
The proposed approach of noting all bankruptcies filed in the past five years in an individual’s public profile “is aligned with its mission to benefit the public,” CFP Board says, and that this proposed approach will benefit CFP professionals and CFP candidates “because they will no longer be subject to potential discipline in bankruptcy-only cases.”
Final proposed amendments will be presented to the Board of Directors for review and approval in March.